Fitch to Upgrade L-T & S-T Ratings to 'AA-/F1+' on $50MM Clark Co, NV IRBs, Ser 2003A

On the effective date of July 30, 2014, Fitch Ratings will upgrade the long- and short-term ratings to 'AA-/F1+', Stable Outlook from 'A+/F1', Stable Outlook assigned to the $50,000,000 Clark County, Nevada Industrial Development revenue bonds (Southwest Gas Corporation Project) series 2003A. The rating action is in connection with: (i) the substitution of the irrevocable direct-pay letter of credit (LOC) previously provided by JPMorgan Chase Bank, N.A. (rated 'A+/F1' Stable Outlook) with a substitute LOC to be issued by Wells Fargo Bank, N.A. (Wells Fargo, rated 'AA-/F1+', Stable Outlook); and (ii) the mandatory tender of the bonds, which will occur on July 30, 2014.

KEY RATING DRIVERS:

On the effective date, the rating will be based on the support provided by the substitute LOC issued by Wells Fargo.

Pursuant to the substitute LOC, the bank is obligated to make regularly scheduled payments of principal of and interest on the bonds in addition to payments due upon maturity, acceleration and redemption, as well as purchase price for tendered bonds. The rating will expire upon the earliest of: (a) July 28, 2017, the initial stated expiration date of the substitute LOC, unless such date is extended; (b) conversion to any interest rate mode other than daily or weekly; (c) any prior termination of the substitute LOC; and (d) defeasance of the bonds. The Wells Fargo LOC provides full and sufficient coverage of principal plus an amount equal to 52 days of interest at a maximum rate of 12% based on a year of 365 days and purchase price for tendered bonds, while in the daily and weekly rate modes. The Remarketing Agent for the bonds is Wells Fargo Securities LLC.

RATING SENSITIVITIES:

The rating is exclusively tied to the short- and long-term rating that Fitch maintains on the bank providing the substitute LOC and will reflect all changes to that rating.

Additional information is available at www.fitchratings.com.

Applicable Criteria and Related Research:

--'U.S. Municipal Structured Finance Criteria', Feb. 24, 2014;

--'Rating Guidelines for Letter of Credit-Supported Bonds and Commercial Paper', June 2, 2014.

Applicable Criteria and Related Research:

U.S. Municipal Structured Finance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=736618

Rating Guidelines for Letter of Credit-Supported Bonds and Commercial Paper

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749431

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